“Mozaic Finance Suffers $2.4M Loss Due to Private Key Breach”

Yield Farming Protocol Mozaic Finance Exploited on Abitrum Network, AI Programs Used to Maximize Returns

The development team of yield farming protocol Mozaic Finance announced on March 15 that it was exploited on the Abitrum network. However, they are confident that all stolen funds, which were deposited to centralized crypto exchange MEXC, will be returned.

Mozaic Finance, a decentralized finance and yield-optimization protocol, utilizes artificial intelligence (AI) programs to maximize returns for investors. However, this did not prevent the recent exploit.

According to blockchain security firm CertiK, the exploit occurred when the attacker called the “bridgeViaLifi” contract, which is only accessible by a developer wallet. CertiK’s report states that the root cause of the incident was a compromised private key.

Blockchain data reveals that the function was called by an account ending in 50eb at 6:08 am UTC, resulting in 27 token transfers with hundreds of thousands of dollars in stablecoin being moved between accounts. CertiK estimates that the total losses amount to over $2 million.

The blockchain community continues to be plagued by hacks and exploits. On March 9, Unizen, a decentralized finance protocol, lost over $2 million due to an external call vulnerability. The project’s development team has promised to promptly compensate those affected. Just a few days earlier, on February 29, Seneca Finance, a lending app, was also exploited for over $6 million in a similar incident.

In a post on their Discord channel on March 15, the Mozaic team expressed their optimism that the stolen funds will be recovered through legal means. This is because the alleged perpetrator has deposited the proceeds of the crime into a centralized exchange.